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Alberto Abaterusso
Alberto Abaterusso
Articles (1701) 

2 Large Health Care Companies Announce 1st-Quarter Earnings

Johnson & Johnson and UnitedHealth Group top estimates on earnings and revenues

April 16, 2019 | About:

Two large health care companies released quarterly earnings results before the opening bell on Tuesday.

Shares of Johnson & Johnson (NYSE:JNJ) jumped 1.3% to $138.30 in premarket trading after beating expectations by 6 cents on non-GAAP earnings of $2.1 per share for the first quarter of fiscal 2019. The result was 1.9% higher year-over-year.

GAAP earnings were $1.39 per share in the quarter, a 13.1% decline.

Posting $20.02 billion, revenue came in flat, beating consensus estimates by $470 million. The consumer segment contributed 16.6% or $3.32 billion in revenue, the pharmaceuticals business segment 51.2% or $10.2 billion, and the medical devices business segment 32.2% or $6.4 billion.

The New Brunswick, New Jersey-based global drug manufacturer noted the following changes in its key product sales. Remicade declined 20.6% to $1.1 billion, Simponi/Simponi Aria went up 1% to $524 million, Stelara increased 32.4% to $1.41 billion. Darzalex jumped 45.5% to $629 million, Xarelto went down 6.3% to $542 million, Zytiga fell 19.6% to$679 million and Imbruvica increased 33.5% to $784 million.

Also, Invega sustennn/Xeplion/Trinza/Trevicta increased 13.5% to $790 million and Prezista/Prezcobix/Rezolsta/Symtuza jumped 9.5% to $523 million.

For full fiscal 2019, the company targets revenue of $80.4 billion to $81.2 billion and non-GAAP earnings per share of $8.53 to $8.63.

Shares of Johnson & Johnson traded around $136.52 at close Monday for a market capitalization of $363.5 billion. The share price increased 4% for the 52 weeks through April 15 to above the 200, 100- and 50-day simple moving average lines. The closing price on Monday was 15.1% off the 52-week low of $118.62 and 9.1% below the 52-week high of $148.99.

The 14-day Relative Strength Indicator is 60 suggesting the stock is neither overbought nor oversold.

Shares of UnitedHealth Group Inc. (NYSE:UNH) were 3.36% higher at $237.94 in premarket trading after beating expectations by 13 cents on non-GAAP earnings of $3.73 per share for the first quarter of fiscal 2019. The result was 22.7% higher than the prior-year quarter.

GAAP earnings were $3.56 per share in the quarter, or a 24% increase.

Revenue was $60.31 billion, or 9.3% higher, beating expectations by $590 million. Premiums contributed 79% or $47.5 billion in revenue, products 13.4% or $8.07 billion, services 7.32% or $4.3 billion and investment and other income 0.7% or $405 million.

The Minnetonka, Minnesota-based health care plans company also recorded that the UnitedHealthcare business segment increased 7.6% to nearly $49 billion and Optum business segment went up 11.7% to approximately $26.4 billion.

Amid the most important projections for the full fiscal year 2019, UnitedHealth Group Inc. expects non-GAAP earnings to range between $14.5 and $14.75 per share versus consensus estimates of $14.65 per share, and GAAP earnings to range between $13.80 and $14.05 per share.

Shares of UnitedHealth Group Inc. traded around $230.2 at close Monday for a market capitalization of $217.7 billion. The share price was flat for the past year through April 15. The share price is below the 200, 100- and 50-day simple moving average lines. The closing price on Monday was 4.3% off the 52-week low of $220.77 and 25.1% below the 52-week high of $287.94.

The 14-day Relative Strength Indicator is 33 suggesting the stock is approaching oversold levels.

Disclosure: I have no positions in any security mentioned.

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About the author:

Alberto Abaterusso
If somebody asks what being a value investor means, Alberto Abaterusso would answer, “The value investor is not just the possessor of the security that represents the company, but he is the owner of that company. As an owner of the company the value investor is actively involved in the dynamics of that company and his first concern is how to have sales progressively growing. Also, the value investor is probably one of the most demanding persons in the world concerning sales.”

Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

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